Data shows the Bitcoin trading volume now seems to be stabilizing at higher values than 2022’s average, but given the trend in the metric this year so far, it may not last too long.
7-Day Average Bitcoin Trading Volume Has Remained Fixed Around $5 Billion Recently
According to the latest weekly report from Arcane Research, after staying at low values for much of 2022, the BTC trading volume looks to have found some ground at high values recently.
The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted on the blockchain on any given day.
When the value of this metric goes up, it means the BTC network is becoming more active as a larger amount of coins are being moved around on the chain.
On the other hand, when the value of the volume decreases, it implies the network is turning less active. Such a trend may be there because investors are waiting for the crypto to reach certain price targets before they make their move. It may also just show a general lack of interest around Bitcoin at the moment.
Related Reading | Bitcoin Exchange Reserve Has Now Reached An Equilibrium After 2 Years Of Downtrend
Now, here is a chart that shows the trend in the BTC trading volume over the past year:
The indicator seems to be at high values for 2022 right now | Source: Arcane Research's The Weekly Update - Week 9, 2022
As you can see in the above graph, the Bitcoin trading volume seems to be around $5 billion right now, and has been around this value for some time now.
This value is significantly higher than what has been there for much of 2022. This means that the network has become more active recently.
Related Reading | Why Is Bitcoin So Volatile, Anyway? Fidelity Digital Assets Explains
However, a few times in the year already the metric has shown similar surges, but the volume always died down soon after.
If Bitcoin isn’t able to make any significant price moves in the near term, the volume may once again sink down as traders start becoming disinterested, just like the instances earlier in 2022.
Low volume can be quite problematic for the crypto since any big price move requires a sufficiently large amount of traders participating, but as during periods of low volume the activity is low, a big price climb won’t sustain for too long.
BTC Price
At the time of writing, Bitcoin’s price floats around $41.9k, down 4% in the past week. The below chart shows the trend in the price of the coin over the last five days.
Looks like the price of Bitcoin has surged up over the past 24 hours | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research
Credit: Source link
